A perfectly competitive market exists when ________.
A) individual buyers or sellers can affect prices by their own actions
B) market prices reach well above their historical averages due to demand outstripping supply
C) market prices drop well below their historical averages due to supply outstripping demand
D) there is a homogeneous product with buying prices equal to selling prices

Question

Quizplus · Accepted Answer

A perfectly competitive market is characterized by a homogeneous product and buying and selling prices that are equal. In this market structure, no individual buyer or seller has the ability to affect prices by their own actions. Choices A, B, and C describe market conditions that do not fit the definition of a perfectly competitive market.

A Perfectly Competitive Market Exists When ________